Android to dominate Australian smartphone market

Android will continue its rise to domination of Australia’s smartphone market and tablets will increasingly become mainstream consumer devices, according to Frost & Sullivan predictions for 2014 and beyond.

The research firm has outlined what it believes will be the six most game-changing trends in Australia’s digital media sector. Android’s increasing market share in the local smartphone market is number one.

Up until 2011, Apple dominated Australia’s smartphone market. In 2012, Android equalised its market share, and this year it overtook iOS as the most popular platform, with 50% to Apple’s 39%. By 2017, Frost & Sullivan predicts that Apple’s market share will fall to under 30%.

Smartphone ownership is also increasing, with penetration reaching 73% of the 15-65 age group in 2013, the firm said. By 2018, penetration is tipped to reach 93%, and virtually all phones sold will have smartphone functionality.

Tablet ownership among this age group has meanwhile grown to 31% this year from 20% in 2012. Nearly half of Australian households (49%) have at least one occupant which owns a tablet. By 2018, Frost & Sullivan believes this figure will grow to 80%.

Apple’s iPad still dominates the Australian tablet market, but here too rivals are gaining ground. Apple’s tablet market share fell from 69% in 2012 to 60% this year, and by 2018 is predicted to drop to less than 40%.

Another key trend is the growing popularity of online video, at the expense of the traditional broadcasting and pay TV markets. In 2013, the percentage of Australian consumers watching TV shows or movies on a TV screen fell to 87%, from 94% in 2012.

The popularity of smartphones and tablets is fuelling the shift, with the frequency of consumer viewing on tablets and smartphones increasing from 20% in 2012 to 24% in 2013.

Advertisers are meanwhile following the money. Australia’s mobile advertising market has more than doubled this year and is expected to achieve similar growth in 2014. Frost & Sullivan is also predicting an upswing in the trading of online video ad inventory via ad exchanges.

Finally, the research firm expects mobile commerce to continue its high growth rates, with purchases via mobile devices on pace to grow by 27% in 2014.

Image courtesy of George Thomas under CC